Vital Signs: Firmer Footing for China’s Recovery

China’s rebound is firming in September, a positive sign for global growth. The September flash reading of the HSBC China manufacturing purchasing managers’ index, compiled by data provider Markit, increased to a six-month high of 51.2 from a final August level of 50.1

The report—which includes between 85% and 90% of all respondents—shows broad improvement for the world’s second largest economy. The new orders index increased to its highest level since March, and export demand swung from contraction to expansion this month. The employment index remains contractionary, but September’s flash level of 49.3 is the best showing since April.

Economists at Nomura Securities warn the recovery may hit a speed bump in November if monetary policy tightens after the Communist Party meets. The Nomura economists write, “At the November meeting we expect the government to shift its focus away from the speed of growth, towards efforts to rebalance the economy and improve the quality of growth.”

This copy is for your personal, non-commercial use only. Distribution and use of this material are governed by our Subscriber Agreement and by copyright law. For non-personal use or to order multiple copies, please contact Dow Jones Reprints at 1-800-843-0008 or visit www.djreprints.com.